Determine interest and amortization of bonds

Assignment Help Accounting Basics
Reference no: EM132510737

Questions -

Q1. Accrual accounting requires estimation of future results. For example, a reserve for bad credit is the current estimated amount of receivables which will ultimately prove uncollectible. What is needed:

Identify and explain three reasons why accounting information might deviate from economic reality. Cite examples of transactions that might give rise to each reason.

Q2. Cybernetics Inc. issue $ 60 million in 5% bonds, with a term of three years with coupons paid on each end of year. Effective interest rates at the beginning of Years 1, 2 and 3 are 8%, 5%, and 2%. What is needed:

a. Determine what will be raised by Cybernetics from the issue of bonds.

b. Assume Cybernetics decides to explain bonds using the amortized cost method.

c. Determine interest and amortization of bonds for each of the three years.

Reference no: EM132510737

Questions Cloud

What we know about labeling and reintegrative shaming : Let's talk a bit about John Braithwaite's concept of "reintegrative shaming" from this module's study of labeling. This is particularly valuable in discussions.
Prepare the entries to record the admission of Maggie : Prepare the entries to record the admission of Maggie based on each of the above options. Prepare the revised partner's equity for option d
Present the arguments for the privatization of prisons : For this assignment, research and present the arguments for and against the privatization of prisons. Offer your policy position on the privatization of prisons
Internal environmental analysis : Identify the most important strengths and weaknesses of your organization including an assessment of the organization's resources.
Determine interest and amortization of bonds : Cybernetics Inc. issue $ 60 million in 5% bonds, with a term of three years with coupons paid on each end of year. Determine interest and amortization of bonds
Different types of nongovernmental police or security forces : Identify and discuss at least 3 different types of nongovernmental police or security forces. You may also choose to profile 3 real-life private detectives.
Modern human populations reflect population movement : Why does genetic data among modern human populations reflect population movement, interbreeding, and adaptation?
Discuss the work and none work stressors : Case - Stress Takes Its Toll Discuss the meaning of money for Larry - Discuss what type of reward(s) is/are applied in Larry's workplace
Considering the increased focus on values : Considering the increased focus on values such as sustainability, environmental rights, human rights, and social responsibility,

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd